On the industry production output data for August 2009

"According to the latest industrial indicators, several sub-branches of processing industry show ever clearer signs of stabilization.  In the production of some food, wood pulp, metal, chemical, and electronic items, it has become possible to stabilize output. For the most part, it has happened due to foreign demand, which is evident in the data on new orders as well as output and sales. That indicates a gradual reorientation of the economy from domestic consumption to export, which is a positive tendency.

In comparative prices (according to seasonally adjusted data), the total volume of processing industry output in August increased 2.5%, thus supporting the stabilization tendencies observed in some previous months. In the longer perspective, it is clear that industry dynamics will by and large be determined the development of demand in the export markets and the ability of the branch to adjust to the new market situation, including optimizing production and costs.

In terms of the next few months, the industry status indicators point toward a gradual recovery of the branch, with the entrepreneurs having a more positive outlook in regard to both the export order dynamics and reduction of final product stocks.  The future outlook has become more positive as well. According to entrepreneur questionnaires, improvement of the situation may be observed in several subbranches of the processing industry (production of wood pulp and metal, chemical and pharmaceutical, rubber and plastic, building material and electronic products), moreover, these data apply also to the high technology branches. The entrepreneurs base their positive outlook regarding future developments on improved competitiveness both in the EU and other markets."